The agency did not apply or collect liquidated damages from contractors who delayed projects, and also incorrectly calculated damages in some cases, contrary to regulations.

Why It Matters

Recommended Actions

• Ensure diligent supervision of project completion timelines by contractors though continuous communication with the Central Office and Regional and District Offices and strengthening the relevant internal controls;

Original Audit Finding Excerpt

"Ref. Audit Observations Audit Recommendations Agency Action Plan Action Plan Person/Dept. Responsibie From Date Target Implementation To Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken a. Ensure full coordination with the concerned = government agencies, particularly the LGUs and DENR to address and resolve the issues/problems contributing to the delayed construction/completion, and to promote effective and more synchronized planning and implementation of projects; the submission of the following on or before October 15, 2022: 3.a, Review/reassess the number of units to be developed/construction 3.6. Maximize and work within the remaining approved budget allocated to their respective Regional Offices: - Reduce/descale the number of units to be developed/construction - Refrain from starting new projects = and repackaging —_ projects which are already terminated and/or with still remaining works which"

Source Document